Answer to blank 1: 100 [i.e., 175 - 75]
Answer to blank 2: $280 [i.e., 250 + 30]
Answer to blank 3: 50 [i.e., 150 - 100]
Under free trade:
Consumer Surplus = 0.5[(460 - 250) * 175] = $18,375
Producer Surplus = 0.5[(250 - 160) * 75] = $3,375
Under a tariff:
Consumer Surplus = 0.5[(460 - 280) * 150] = $13,500
Producer Surplus = 0.5[(280 - 160) * 100] = $6,000
Government revenue = $30 * 50 = $1500
Under free trade ($) | Under a tariff ($) | |
CS | 18,375 | 13,500 |
PS | 3,375 | 6,000 |
GR | 0 | 1,500 |
Answer to blank 4: Decreases
Answer to blank 5: 4,875 [i.e., 18,375 - 13,500]
Answer to blank 6: Increases
Answer to blank 7: 2,625 [i.e., 6000 - 3375]
Answer to blank 8: 1500 [i.e., $30 * 50]
Answer to blank 3: Decrease
Answer to blank 3: 2,250 [i.e., (18375 + 3375) - (13,500 + 6,000)]
3. Welfare effects of a tariff In a small country Suppose Kenya is open to free...
3. Welfare effects of a tariff in a small country Suppose Bolivia is open to free trade in the world market for wheat. Because of Bolivia’s small size, the demand for and supply of wheat in Bolivia do not affect the world price. The following graph shows the domestic wheat market in Bolivia. The world price of wheat is PWPW = $250 per ton. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer...
3. Welfare effects of a tariff In a small country Suppose Kenya is open to free trade In the world market for wheat. Because of Kenya's small size, the demand for and supply of wheat In Kenya do not affect the world price. The following graph shows the domestic wheat market In Kenya. The world price of wheat is Pw - $250 per ton. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS)...
Aplia Homework: International Trade 3. Welfare effects of a tariff in a small country Suppose Zambia is open to free trade in the world market for soybeans. Because of Zambia's small size, the demand for and supply of soybeans in Zambia do not affect the world price. The following graph shows the domestic soybeans market in Zambia. The world price of soybeans is Pw-$400 per ton On the following graph, use the green triangle (triangle symbols) to shade the area...
3. welfare effects of tariff in small country Suppose Bolivia is open to free trade in the world market for wheat. Because of Bolivia's small size, the demand for and supply of wheat in Bolivia do not affect the world price. The following graph shows the domestic wheat market in Bolivia. The world price of wheat is P $250 per ton. On the folowing graph, use the green triangle (triangle symbols)to shade the area representing consumer surplus (CS) when the...
This is one problem please answer the following 3. Welfare effects of a tariff in a small country Suppose Bolivia is open to free trade in the world market for wheat. Because of Bolivia's small size, the demand for and supply of wheat in Bolivia do not affect the world price. The following graph shows the domestic wheat market in Bolivia. The world price of wheat is Pw - $250 per ton. On the following graph, use the green triangle...
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fill in the blank 1)increase/decrease 2)increase/decrease 3)gain/loss Suppose New Zealand is open to free trade in the world market for wheat. Because of New Zealand's small size, the demand for and supply of wheat in New Zealand do not affect the world price. The following graph shows the domestic wheat market in New Zealand. The world price of wheat is Pw = $250 per ton. On the following graph, use the green triangle (triangle symbols) to shade the area representing...
Based on your analysis, as a result of the tariff, new Zealand's consumer surplus (increase/decrease) by $______________, a producer surplus *(increase/Decrease) by $__________, and the government collects $____________ in revenue. Therefore, the net welfare effect is a (gain/loss) by $____________. 3. Welfare effects of a tariff in a small country Suppose New Zealand is open to free trade in the world market for wheat. Because of New Zealand's small size, the demand for and supply of wheat in New Zealand...
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6. Welfare effects of a tariff in a small country Suppose Panama is open to free trade in the world market for maize. Because of Panama's small size, the demand for and supply of maize in Panama do not affect the world price. The following graph shows the domestic maize market in Panama. The world price of maize is Pw =$350 per ton. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS) when...